LITHIA MOTORS INC (LAD) Fundamental Analysis & Valuation

NYSE:LAD • US5367971034

Current stock price

274.48 USD
-7.3 (-2.59%)
At close:
276.98 USD
+2.5 (+0.91%)
After Hours:

This LAD fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. LAD Profitability Analysis

1.1 Basic Checks

  • In the past year LAD was profitable.
  • In the past year LAD had a positive cash flow from operations.
  • LAD had positive earnings in each of the past 5 years.
  • In multiple years LAD reported negative operating cash flow during the last 5 years.
LAD Yearly Net Income VS EBIT VS OCF VS FCFLAD Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M 1B 1.5B

1.2 Ratios

  • With a decent Return On Assets value of 3.26%, LAD is doing good in the industry, outperforming 62.30% of the companies in the same industry.
  • The Return On Equity of LAD (12.41%) is better than 69.67% of its industry peers.
  • LAD has a Return On Invested Capital of 5.16%. This is comparable to the rest of the industry: LAD outperforms 58.20% of its industry peers.
  • LAD had an Average Return On Invested Capital over the past 3 years of 5.89%. This is significantly below the industry average of 13.64%.
Industry RankSector Rank
ROA 3.26%
ROE 12.41%
ROIC 5.16%
ROA(3y)3.94%
ROA(5y)5.93%
ROE(3y)13.5%
ROE(5y)17.49%
ROIC(3y)5.89%
ROIC(5y)8.14%
LAD Yearly ROA, ROE, ROICLAD Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20

1.3 Margins

  • The Profit Margin of LAD (2.18%) is better than 61.48% of its industry peers.
  • LAD's Profit Margin has declined in the last couple of years.
  • Looking at the Operating Margin, with a value of 4.26%, LAD is in the better half of the industry, outperforming 66.39% of the companies in the same industry.
  • LAD's Operating Margin has declined in the last couple of years.
  • With a Gross Margin value of 15.43%, LAD is not doing good in the industry: 84.43% of the companies in the same industry are doing better.
  • LAD's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 4.26%
PM (TTM) 2.18%
GM 15.43%
OM growth 3Y-14.02%
OM growth 5Y-4.11%
PM growth 3Y-21.12%
PM growth 5Y-9.47%
GM growth 3Y-5.46%
GM growth 5Y-1.87%
LAD Yearly Profit, Operating, Gross MarginsLAD Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

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ROAROEROICOperating and Profit MarginShow most profitable peers

2

2. LAD Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LAD is destroying value.
  • LAD has less shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, LAD has less shares outstanding
  • The debt/assets ratio for LAD is higher compared to a year ago.
LAD Yearly Shares OutstandingLAD Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5M 10M 15M 20M 25M
LAD Yearly Total Debt VS Total AssetsLAD Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

2.2 Solvency

  • LAD has an Altman-Z score of 2.34. This is not the best score and indicates that LAD is in the grey zone with still only limited risk for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 2.34, LAD is in line with its industry, outperforming 53.28% of the companies in the same industry.
  • LAD has a debt to FCF ratio of 2555.50. This is a negative value and a sign of low solvency as LAD would need 2555.50 years to pay back of all of its debts.
  • The Debt to FCF ratio of LAD (2555.50) is worse than 63.11% of its industry peers.
  • A Debt/Equity ratio of 2.22 is on the high side and indicates that LAD has dependencies on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 2.22, LAD is doing worse than 68.85% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 2.22
Debt/FCF 2555.5
Altman-Z 2.34
ROIC/WACC0.87
WACC5.96%
LAD Yearly LT Debt VS Equity VS FCFLAD Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B 8B

2.3 Liquidity

  • A Current Ratio of 1.17 indicates that LAD should not have too much problems paying its short term obligations.
  • LAD's Current ratio of 1.17 is on the low side compared to the rest of the industry. LAD is outperformed by 62.30% of its industry peers.
  • A Quick Ratio of 0.26 indicates that LAD may have some problems paying its short term obligations.
  • LAD has a worse Quick ratio (0.26) than 81.15% of its industry peers.
Industry RankSector Rank
Current Ratio 1.17
Quick Ratio 0.26
LAD Yearly Current Assets VS Current LiabilitesLAD Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. LAD Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 13.88% over the past year.
  • LAD shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.56% yearly.
  • LAD shows a small growth in Revenue. In the last year, the Revenue has grown by 4.00%.
  • LAD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.45% yearly.
EPS 1Y (TTM)13.88%
EPS 3Y-8.3%
EPS 5Y13.56%
EPS Q2Q%-13.48%
Revenue 1Y (TTM)4%
Revenue growth 3Y10.11%
Revenue growth 5Y23.45%
Sales Q2Q%-0.26%

3.2 Future

  • The Earnings Per Share is expected to grow by 14.23% on average over the next years. This is quite good.
  • LAD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.13% yearly.
EPS Next Y4.28%
EPS Next 2Y10.02%
EPS Next 3Y10.29%
EPS Next 5Y14.23%
Revenue Next Year2.98%
Revenue Next 2Y3.54%
Revenue Next 3Y5.19%
Revenue Next 5Y5.13%

3.3 Evolution

  • The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
LAD Yearly Revenue VS EstimatesLAD Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10B 20B 30B 40B
LAD Yearly EPS VS EstimatesLAD Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 20 40 60

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5

4. LAD Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 8.04, which indicates a very decent valuation of LAD.
  • Based on the Price/Earnings ratio, LAD is valued cheaper than 93.44% of the companies in the same industry.
  • LAD is valuated cheaply when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 7.71, the valuation of LAD can be described as very cheap.
  • Based on the Price/Forward Earnings ratio, LAD is valued cheaper than 93.44% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of LAD to the average of the S&P500 Index (38.20), we can say LAD is valued rather cheaply.
Industry RankSector Rank
PE 8.04
Fwd PE 7.71
LAD Price Earnings VS Forward Price EarningsLAD Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • LAD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LAD is cheaper than 65.57% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of LAD indicates a slightly more expensive valuation: LAD is more expensive than 62.30% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 1102.65
EV/EBITDA 8.44
LAD Per share dataLAD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 500 1K 1.5K

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)1.88
PEG (5Y)0.59
EPS Next 2Y10.02%
EPS Next 3Y10.29%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. LAD Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.83%, LAD is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 3.39, LAD pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.82, LAD's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.83%

5.2 History

  • On average, the dividend of LAD grows each year by 13.75%, which is quite nice.
  • LAD has been paying a dividend for at least 10 years, so it has a reliable track record.
  • LAD has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)13.75%
Div Incr Years12
Div Non Decr Years12
LAD Yearly Dividends per shareLAD Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2

5.3 Sustainability

  • 6.75% of the earnings are spent on dividend by LAD. This is a low number and sustainable payout ratio.
  • The dividend of LAD is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP6.75%
EPS Next 2Y10.02%
EPS Next 3Y10.29%
LAD Yearly Income VS Free CF VS DividendLAD Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M 1B 1.5B
LAD Dividend Payout.LAD Dividend Payout, showing the Payout Ratio.LAD Dividend Payout.PayoutRetained Earnings

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LAD Fundamentals: All Metrics, Ratios and Statistics

LITHIA MOTORS INC

NYSE:LAD (4/15/2026, 8:04:00 PM)

After market: 276.98 +2.5 (+0.91%)

274.48

-7.3 (-2.59%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)02-11
Earnings (Next)04-29
Inst Owners105.08%
Inst Owner Change0.04%
Ins Owners1.09%
Ins Owner Change8.69%
Market Cap6.40B
Revenue(TTM)37.63B
Net Income(TTM)819.60M
Analysts82
Price Target384.27 (40%)
Short Float %10.27%
Short Ratio6.59
Dividend
Industry RankSector Rank
Dividend Yield 0.83%
Yearly Dividend2.22
Dividend Growth(5Y)13.75%
DP6.75%
Div Incr Years12
Div Non Decr Years12
Ex-Date03-06
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.65%
Min EPS beat(2)-17.73%
Max EPS beat(2)10.43%
EPS beat(4)2
Avg EPS beat(4)0.21%
Min EPS beat(4)-17.73%
Max EPS beat(4)10.43%
EPS beat(8)5
Avg EPS beat(8)0.24%
EPS beat(12)6
Avg EPS beat(12)0.31%
EPS beat(16)7
Avg EPS beat(16)0.15%
Revenue beat(2)1
Avg Revenue beat(2)0.19%
Min Revenue beat(2)-0.9%
Max Revenue beat(2)1.29%
Revenue beat(4)1
Avg Revenue beat(4)-1%
Min Revenue beat(4)-2.33%
Max Revenue beat(4)1.29%
Revenue beat(8)2
Avg Revenue beat(8)-1.35%
Revenue beat(12)3
Avg Revenue beat(12)-1.62%
Revenue beat(16)4
Avg Revenue beat(16)-1.24%
PT rev (1m)-4.81%
PT rev (3m)-4.53%
EPS NQ rev (1m)-8.48%
EPS NQ rev (3m)-15.75%
EPS NY rev (1m)-3.84%
EPS NY rev (3m)-7.32%
Revenue NQ rev (1m)-1.1%
Revenue NQ rev (3m)-1.33%
Revenue NY rev (1m)-0.8%
Revenue NY rev (3m)-1.64%
Valuation
Industry RankSector Rank
PE 8.04
Fwd PE 7.71
P/S 0.17
P/FCF 1102.65
P/OCF 17.93
P/B 0.97
P/tB 4.74
EV/EBITDA 8.44
EPS(TTM)34.14
EY12.44%
EPS(NY)35.6
Fwd EY12.97%
FCF(TTM)0.25
FCFY0.09%
OCF(TTM)15.31
OCFY5.58%
SpS1615.23
BVpS283.4
TBVpS57.9
PEG (NY)1.88
PEG (5Y)0.59
Graham Number466.576 (69.99%)
Profitability
Industry RankSector Rank
ROA 3.26%
ROE 12.41%
ROCE 8.71%
ROIC 5.16%
ROICexc 5.19%
ROICexgc 6.69%
OM 4.26%
PM (TTM) 2.18%
GM 15.43%
FCFM 0.02%
ROA(3y)3.94%
ROA(5y)5.93%
ROE(3y)13.5%
ROE(5y)17.49%
ROIC(3y)5.89%
ROIC(5y)8.14%
ROICexc(3y)6.06%
ROICexc(5y)8.32%
ROICexgc(3y)7.91%
ROICexgc(5y)10.68%
ROCE(3y)9.93%
ROCE(5y)13.01%
ROICexgc growth 3Y-21.27%
ROICexgc growth 5Y-4.67%
ROICexc growth 3Y-20.69%
ROICexc growth 5Y-6.78%
OM growth 3Y-14.02%
OM growth 5Y-4.11%
PM growth 3Y-21.12%
PM growth 5Y-9.47%
GM growth 3Y-5.46%
GM growth 5Y-1.87%
F-Score4
Asset Turnover1.5
Health
Industry RankSector Rank
Debt/Equity 2.22
Debt/FCF 2555.5
Debt/EBITDA 7.62
Cap/Depr 108.44%
Cap/Sales 0.93%
Interest Coverage 2.26
Cash Conversion 18.51%
Profit Quality 0.71%
Current Ratio 1.17
Quick Ratio 0.26
Altman-Z 2.34
F-Score4
WACC5.96%
ROIC/WACC0.87
Cap/Depr(3y)113.41%
Cap/Depr(5y)144.06%
Cap/Sales(3y)0.88%
Cap/Sales(5y)0.97%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)13.88%
EPS 3Y-8.3%
EPS 5Y13.56%
EPS Q2Q%-13.48%
EPS Next Y4.28%
EPS Next 2Y10.02%
EPS Next 3Y10.29%
EPS Next 5Y14.23%
Revenue 1Y (TTM)4%
Revenue growth 3Y10.11%
Revenue growth 5Y23.45%
Sales Q2Q%-0.26%
Revenue Next Year2.98%
Revenue Next 2Y3.54%
Revenue Next 3Y5.19%
Revenue Next 5Y5.13%
EBIT growth 1Y0.55%
EBIT growth 3Y-5.32%
EBIT growth 5Y18.38%
EBIT Next Year7.51%
EBIT Next 3Y9.39%
EBIT Next 5Y10.36%
FCF growth 1Y-92.13%
FCF growth 3YN/A
FCF growth 5Y-56.55%
OCF growth 1Y-16.09%
OCF growth 3YN/A
OCF growth 5Y-8.04%

LITHIA MOTORS INC / LAD Fundamental Analysis FAQ

What is the fundamental rating for LAD stock?

ChartMill assigns a fundamental rating of 4 / 10 to LAD.


Can you provide the valuation status for LITHIA MOTORS INC?

ChartMill assigns a valuation rating of 5 / 10 to LITHIA MOTORS INC (LAD). This can be considered as Fairly Valued.


Can you provide the profitability details for LITHIA MOTORS INC?

LITHIA MOTORS INC (LAD) has a profitability rating of 4 / 10.


Can you provide the PE and PB ratios for LAD stock?

The Price/Earnings (PE) ratio for LITHIA MOTORS INC (LAD) is 8.04 and the Price/Book (PB) ratio is 0.97.


What is the financial health of LITHIA MOTORS INC (LAD) stock?

The financial health rating of LITHIA MOTORS INC (LAD) is 2 / 10.